South Korea’s top companies pledged significant domestic investments on Sunday after President Lee Jae Myung credited the business sector for helping secure a major trade deal with the United States. Lee urged the firms to balance their overseas commitments with strong domestic spending to support the national economy.
The meeting came days after Seoul finalised the trade agreement, in which South Korea promised $350 billion (€301 billion) in investments across U.S. industries in exchange for the Trump administration lowering its highest tariffs. The deal includes $150 billion (€129 billion) for the American shipbuilding sector and an additional $200 billion (€172 billion) in other U.S. industries, with annual caps of $20 billion to avoid destabilising financial markets.
Samsung Electronics, a global leader in semiconductors, announced plans to invest 450 trillion won (€266 billion) over the next five years to expand domestic operations. The company will build a new production line at its Pyeongtaek hub to meet rising global demand for memory chips, particularly driven by artificial intelligence. Samsung also intends to develop AI data centres in South Jeolla Province and the city of Gumi, aiming to narrow the technological gap between Seoul and other regions. The new line is expected to be operational by 2028.
Hyundai Motor Group revealed a plan to invest 125 trillion won (€74 billion) from 2026 to 2030 in domestic research and development. The investment will focus on advanced technologies, including AI, robotics, and autonomous vehicles. Other South Korean conglomerates, such as SK Group and shipbuilders Hanwha Ocean and HD Hyundai, also committed to increasing domestic spending while contributing to U.S. shipbuilding projects highlighted in the trade negotiations.
During the meeting, President Lee acknowledged the role of the business community in the trade negotiations but emphasized that domestic investment must remain a priority. He said his administration is considering policy measures, including regulatory adjustments, to create a more supportive environment for companies investing at home.
SK Group Chair Chey Tae-won, whose company plans at least 128 trillion won (€76 billion) in domestic investments through 2028, said the conclusion of the U.S. trade talks removes uncertainties and allows for more ambitious local projects.
The agreement with Washington includes the reduction of U.S. tariffs on South Korean automobiles and auto parts from 25% to 15%, while South Korean semiconductors will benefit from tariff treatment no less favourable than that granted to competing countries in the future.
By committing to large-scale domestic projects, South Korea’s major firms aim to balance international obligations with the need to strengthen the national economy, ensuring that local job creation and technological development remain at the forefront of corporate strategies.
